GameFi crypto project Gala initiated legal action against the pNetwork company over an incident that happened with the Gala project three months ago.
Gala is a crypto & blockchain technology-based gaming platform. The Gala project represents itself as a GameFi project in crypto space. Gala is the native token of this project and the current trade price of Gala is $0.042, which is 12.26% higher over the last 7 days of trade price.
In early Nov 2022, the cross-chain interoperability bridge used by Gala on the BNB Smart Chain was exploited by a hacker. Hacker minted $2 billion worth of Gala tokens and successfully drained $4.5 million from the liquidity pool, which resulted in a 20% crash in the price of Gala token.
On 7 Nov 2022, the security firm SlowMist investigation claimed that the private key of the proxyAdmin contract’s owner address was publicly available on the GitHub platform by mistake and that hacker used that private key to exploit the bridge.
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At that time, the Huobi crypto exchange also claimed that it was the fault of the pNetwork team but the pNetwork team denied all allegations and also warned that it will take legal action.
2/2 … Huobi was notified Thursday at 7:24pm UTC and acknowledged the emergency 2 minutes later but blocked deposits several hours later. pNetwork has not made any profit out of this operation aimed to minimize the damage caused by the compromised pGALA contract.
— pNetwork
(@pNetworkDeFi) November 6, 2022
On 20 March 2023, Gala Games announced that its legal team sued pNetwork over its negligence and tortious interference.
Now, Gala wants $27.7 million from the network team, for all the loss & damage that the Gala team faced because of that exploit.
In response to this lawsuit, the pNetwork spokesperson said that the pNetwork team did all the work which was necessary after that attack, which took place three months ago. The spokesperson said that it was a surprise for them because it was unexpected, as the network team cooperated at every level with the corresponding authorities.
Read also: Chainalysis confirms Euler Finance exploiter was not linked with North Korea
Gala files $28M lawsuit against the pNetwork
https://bitcoinik.com/gala-files-28m-lawsuit-against-the-pnetwork/feed/
https://bitcoinik.com/gala-files-28m-lawsuit-against-the-pnetwork/feed/
